2A1E STANFORD COMPANY LEASED SOME SPECIAL-PURPOSE EQUIPMENT FROM VINC...

20.

CSO: 2A1d

LOS: 2A1e

Stanford Company leased some special-purpose equipment from Vincent Inc. under a

long-term lease that was treated as an operating lease by Stanford. After the financial

statements for the year had been issued, it was discovered that the lease should have been

treated as a capital lease by Stanford. All of the following measures relating to Stanford

would be affected by this discovery except the

a.

debt/equity ratio.

b.

accounts receivable turnover.

c.

fixed asset turnover.

d.

net income percentage.